Top Trade Ideas for the Week of May 2, 2011: The First 5

After reviewing over 700 charts, I have found some good setups for the week. This week’s list contains the first five below to get you started early. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Saturday which looks cautiously higher for both Gold and Crude Oil. The US Dollar Index looks to continue it death march lower searching for new all time lows while US Treasuries continue to favor the upside. The Shanghai Composite on support has more downside potential and the Emerging Markets look to be in a range, with a bias higher. Low and stable Volatility look to continue to support an environment for the Equity Index ETF’s, SPY, IWM and QQQ to move higher, with the SPY and IWM looking to have the best prospects in the short term. Use this information to understand the major trend and how it may be influenced as you prepare for the coming week ahead. Trade’m well.

(As always you can see details of individual charts and more on my StockTwits feed and on chartly.)

Here are the first 5 ideas for the week, to get you started:

Atlas Air Worldwide, Ticker:$AAWW

Atlas Air Worldwide is consolidating in a channel between 62 and 70. If it can break above the top rail at 70 then it has resistance at 72 and a target of 78. The Moving Average Convergence Divergence (MACD) indicator has just crossed positive and the Relative Strength Index (RSI) is rising, both supportive of further upside. Place a stop just under the channel on a long trade. If however, it rejects at that top rail then it can be played short to support at 66.71 and then 62 lower. Earnings on May 3rd may be a catalyst to move it.

Charles River Laboratories, Ticker:$CRL

Charles River Labs is in a bull flag after a move higher at the beginning of April. If it can break the flag higher above 42.50 then the target is 46.50. Wait for the break to enter as the MACD and RSI are not giving any early guidance. This also has earnings May 3rd.

DuPont Fabros Technology, Ticker:$DFT

DuPont Fabros broke above a triple top resistance at 24.40 last week and has held so far. If it continues to hold then look for resistance at 25.50, 26.50 and 27.50 higher before it is in free air. It did print a long shadowed Hanging Man candle on Friday, a potential reversal signal, so this is not a lay up trade, use a stop around 24, but the MACD is increasing and the RSI is rising. Another one with a May 3rd earnings release.

Express Scripts, Ticker:$ESRX

Express Scripts is approaching the slightly rising neckline of an Inverse Head and Shoulders pattern. If it breaks that neckline at 57.71 the target of the pattern is at least 64.24. There is resistance along eh way at 58.77. A rising RSI and increasing MACD are supportive of a further upside move.

Fortress Investment Group, Ticker:$FIG

Fortress is moving higher off of the rising 100 day Simple Moving Average (SMA). It also has a rising RSI and increasing MACD supporting more upside as the Bollinger bands are expanding higher to allow it to run. There is resistance at 6.25 and 6.75 before it can retest the top at 7 and then have free air above. Use a stop at 6.05. Earnings come out on May 5th for FIG.

The Rest

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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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